Contractor Teaming Agreement


A contractor teaming agreement is a contractual agreement between two or more independent contractors who agree to work together to jointly pursue and complete a specific project. The agreement provides an opportunity for small businesses and independent contractors to collaborate and pool their resources, expertise, and capabilities to compete for larger contracts.

Contractor teaming agreements are becoming increasingly popular in the construction industry. Many government agencies and private organizations now require that contracts for large projects be awarded to small business contractors or those that engage in teaming agreements.

In this article, we will discuss the importance of contractor teaming agreements and some considerations that need to be made when entering into such agreements.

1. Benefits of Contractor Teaming Agreements:

– Access to larger contracts: Contractor teaming agreements enable small businesses to work on larger projects that they may not have the resources or capabilities to handle alone.

– Shared expertise and resources: By collaborating with other contractors, each team member can bring their unique expertise, knowledge, and resources to the table.

– Risk sharing: Each team member shares the risks and rewards associated with the project. This helps to reduce the financial burden on any one contractor.

– Improved competitiveness: By pooling their resources, the team can submit more competitive bids, making them more likely to win contracts.

2. Considerations when Entering into a Contractor Teaming Agreement:

– Legal considerations: Before entering into a contractor teaming agreement, it is important to seek legal advice to ensure the agreement complies with all relevant laws and regulations.

– Compatibility: The teaming agreement should be entered into with compatible partners whose skills, experience, and expertise complement each other.

– Roles and responsibilities: Each team member should have a defined role and set of responsibilities in the project, and the agreement should outline the division of labor and risk-sharing provisions.

– Communication: Clear communication is essential for the success of contractor teaming agreements. The agreement should specify how communication will take place, who will be responsible for it, and how often it will occur.


Contractor teaming agreements are an effective way to pool resources and expertise to compete for larger contracts. Small businesses and independent contractors can benefit from entering into these agreements, but careful consideration must be given to legal, compatibility, and communication issues. By entering into a well-drafted contractor teaming agreement, small businesses can increase their competitiveness and improve their chances of winning larger contracts, leading to long-term success.